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When you finally make that offer, on paper, for that beautiful new condominium, the sales agent will hand you either a book, often bound, or a pile of different documents and will then tell you that have ten (10) days, to finalise your decision to go through with the sale. There you are with more legal papers then you have ever seen at one time and a huge question, what is all this stuff?
The law requires that the builder provide you with a number of documents in order that you can learn what is really going on with that new condominium before it is too late. They include the Disclosure Statement, and the documents that go with it being; a Budget Statement, a Proposed Declaration, the Proposed By-laws, a Proposed Insurance Trust Agreement, a Proposed Management Agreement, the Proposed Rules and the Proposed Condominium Plans. I will endeavor to explain each of these items. I may only be able to deal with one per article because of space constraints, so you will have to read the next issue. This is sort of like a serialised mystery story and you will only get to find out the ending when you read it. As an aside, please send in your questions to the magazine and I will try to answer them in print. What is the Disclosure Statement? It is a document that discloses, in short form, a great many of the matters which are important to you in deciding on the unit. This statement must be provided to you under the Condominium Act s.72(1) and (2) and pursuant s. 72(3) it must contain some very specific information. Here is a list of some of those points: 72(3) b - a statement indicating what kind of condominium it is. 72(3) c - name and municipal address of the declarant and the property 72(3) d - a general description of the property. This includes the types and numbers of buildings, units, and recreational and other amenities and conditions that apply to them 72(3) f - whether or not ONHWPA applies or will apply 72(3) g - whether it is a conversion 72(3) h - what units may be for commercial or non residential use. 72(3) i - Information about the portion of units that the builder intends to market in blocks of units to investors. 72(3) j - Information about the portion of units that the builder intends to lease. 72(3) k & l - amenities, when ready 72(3) m - copy of declaration, by-laws, rules and insurance trust agreement 72(3) n - an executive summary of most agreements outstanding 72(3) q,r,s - budget information and fees Ok, you now have a little better idea, I hope, about that first document and please let me stress how important it is that you read the material provided, within the ten day cooling off period in order that you can make an educated decision. Perhaps the most difficult part of writing these articles relates not the actual writing, but thinking of a topic to address. So help me!!! Mail, deliver or fax letters to the magazine or to us, use the web site (www.schwarzgillen.com), email (schwarzgillen@sprint.ca) and give us your questions, concerns, critiques and quandaries. I will try to deal with them in print or electronic form. Good luck and happy condo hunting I'll talk to you next issue!! |
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